NHAI to try out project-based funding for road development

The National Highways Authority of India (NHAI) will try out project-based funding for building highways under the engineering, procurement and construction (EPC) route as India’s highway development agency looks at newer ways to take debt off its balance sheet.

“Project based financing is something which we are looking at,” Ashish Sharma, Member (Finance), NHAI said at a road show organised by the Authority in Mumbai on September 9.

“Till now, financing for NHAI was at the corporate level; project-based financing is something which we have not tried. Now, for some of the signature projects, we are looking at this mode also. This is one of the key initiatives we are moving forward with,” Sharma said.

NHAI, the world’s second largest highway network manager, is targeting 4,500 kms of highways in FY20.